South Africa PMI December 2015

South Africa: PMI moderates slightly in December

December 3, 2015

The Standard Bank Purchasing Managers’ Index (PMI) dropped from 49.6 in November to 49.1 in December. The previous month’s figure had marked a six-month high. As a result of the drop, the index is now further below the 50-threshold, which separates expanding from contracting conditions in business activity.

December’s deterioration mainly reflected that output in the private sector dropped at a sharper rate compared to the previous month amid a decline in new business. Moreover, employment decreased and companies lowered their buying activity again in December. Analysts added that, “Subdued demand remained one of the main reasons for companies to reduce their buying activity in December. Lower input buying in turn contributed to a further reduction in pre-production inventories.”

Met the why particular Consensus Forecast panelists see investment rising 2.0% in 2016, which is unchanged from the previous month’s estimate. For 2017, the panel expects industrial production to increase 1.6%.

Author:Dirina Mançellari, Senior Economist

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According to a preliminary estimate released by the Statistical Institute on 8 February, year-on-year manufacturing production expanded 2.0% in December, coming in above the revised 1.5% increase in November (previously reported: +1.7% year-on-year).